The Tamaqua Area School Board on Tuesday approved a three-year contract with its teachers union, which includes raises in all three years but also increased health insurance costs.

The board approved the 2025-28 contract with the Tamaqua Education Association that calls for average raises of $2,900 in the first year and $2,500 in each of the remaining two years, according to Superintendent Ray Kinder.

Two steps, or incremental salary increases in the contract, were eliminated as well, he said in an email following the brief meeting.

Teachers will also be paying more for health care, with increases in deductibles to $500 and $1,000; and copays going to $30 for a doctor’s office visit, $40 for a specialist, $50 for urgent care and $100 for emergency room visits.

Teachers, who current pay 6% of their health care premiums, will see a 0.5% increase in the rate in third year of the contract, Kinder said.

The district also provides a health care opt-out incentive to teachers, he said. The incentive is $5,000 if 16 or fewer professional employees opt-out, or $8,000 if 17 or more opt out, Kinder said.

The new contract also adjusts the terminal leave payment schedules, or the amount the district pays for each sick day at retirement, as follows: 100 sick days or more, $90 a day; 51-99 sick days, $80; and 50 or fewer, $50.

The credit repayment schedule, or amount a teacher repays for continuing education or professional development courses paid by the district upon separation, are as follows: one to three years separation, 100% repayment; and four to five years, 50%.

The district is also offering a retirement incentive specifically for employees leaving at the end of the 2025-26 school year, Kinder said.

The district is offering to put $10,000 a year as part of the health reimbursement arrangement for 10 years or age 65 for those potential retirees, he said.

Employees do not have to be 55 to be eligible for the retirement incentive, but they will only receive it for 10 years, and those older than 55 will only see the yearly contribution until age 65, he said.

The board also approved a memorandum of understanding regarding a professional development bonus, prorating the $1,000 for employees on the job less than one year.

The board did not discuss the contract publicly, but held an executive session to brief the full board on the proposed pact presented by the negotiation committee immediately before the vote.

Kinder said the teachers union also approved the pact, which is awaiting finalization with signatures. The Times News has requested a copy of the contract once finalized.